Setting Safety KPIs that work

Key Performance Indicator

John McGerty (Grad IOSH Dip RSA)

Safety, Health & Environment Manager

Gilbert-Ash N.I. LTD

You can build on our reputation

Terminology
Key Performance Indicators (KPI) - Measurable
indicators that will be used to report progress that is
chosen to reflect the critical success Strategic
Critical Success Factors (CSF)-A factor considered to
be most conducive to the achievement of a successful
Strategic Aims- Are the tools we use to organise and
focus our diverse activities. Through the Corporate Plan,
we will define specific objectives and targets relating to
each Strategic Aim
 Key Performance Indicator
Generally there are two approaches
KPI based on Strategic themes
KPI Based on Critical success factors

They both drive from:

Objectives from strategic aims
Performance indicators flowing from objectives
Status and progress indicators
Year on year change indicators
Strategic Aims-
Over the period Jan 2012 to Dec 2012 all employers
are to demonstrate Continuous Improvement in their
health and safety management performance whilst
being benchmarked using a suitable benchmarking
tool.
What IS A KPI
A KPI (Key Performance Indicator) is simply a metric
that is tied to a target.
Most often, a KPI represents how far a metric is above
or below a pre-determined target.
KPIs usually are shown as a ratio of actual to target
and are designed to instantly let a business user know
if they are on or off their plan without the end user
having to consciously focus on the metrics being
represented.
SMART is an abbreviation for
the five conditions of good KPIs:
* Specific It has to be clear what the KPI exactly measures.
There has to be one widely-accepted definition of the KPI to
make sure the different users interpret it the same way and, as a
result, come to the same and right conclusions which they can
act on.
* Measurable The KPI has to be measurable to define a
standard, budget or norm, to make it possible to measure the
actual value and to make the actual value comparable to the
budgeted value.
* Achievable Every KPI has to be measurable to define a
standard value for it. It is really important for the acceptance of
KPIs and Performance Management in general within the
organization that this norm is achievable. Nothing is more
discouraging than striving for a goal that you will never obtain.
SMART is an abbreviation for the five
conditions of good KPIs:
* Relevant The KPI must give more insight in the
performance of the organization in obtaining its
strategy. If a KPI is not measuring a part of the strategy,
acting on it doesnt affect the organizations
performance. Therefore an irrelevant KPI is useless.
* Time phased It is important to express the value of
the KPI in time. Every KPI only has a meaning if one
knows the time dimension in which it is realized. The
realization and standardization of the KPI therefore
has to be time phased.
Critical Success Factors
Critical success factors key issues requiring
management attention
Represent real issues faced here and now
Performance indicators relate to critical success
factors not strategic aims offers greater
flexibility
Critical success factors can be mapped to
strategic aims
How To Achieve Success
Identify areas of activity that require greater
attention
Performance indicators that are grounded
(SMART)
Striking a balance between a comprehensive set
of KPIs and information overload
Selecting Project Specific KPI
What you measure is what you get. (Kaplan and
Norton, 1992).

KPI help define the achievement of the CSF

Number depends on their comprehensiveness and

importance of the CSF to overall project success.
Sources of potential KPI
Do the KPIs provide YOU with a clear indication of
progress to date and areas requiring greater
attention?
Strategic aims do not always lend themselves to
measurement and require associated objectives
No difficulty with objectives extracted from the
Corporate Strategy but derived objectives may have
no real ownership
Introduction of KPIs
Introduction of KPIs represents a major step
forwards
Enables YOU to understand where progress is
being made towards achieving strategic aims
and those areas which need to be addressed
The management review in BS EN ISO and OHSAS
standards also help focus performance
 Development of
KPIs that work

John Thompson
H&J Martin Facilities Management
February 2012
Is your H&S management good?
How do you know?
Current Position?
We dont have many accidents

We havent had many RIDDORs

Operatives get loads of training

Theres PPE if they need it

We do regular H&S inspections

Establish Current Position....
No. of accidents

No. H&S inspections

Frequency of inspections

Average inspection score

Meaningful...
Strategy
Aims/Objectives
Policy
Regulatory requirements
Industry standards
Moral
Health
Social
Meaningful....
Accidents
Inspections
What has been asked of us?
Strategic
Aim

Continuous
improvement
in health and
safety
management
performance
What are we doing?
Strategic Initiatives
Aim
New inspection regime,
introducing quarterly
Continuous
inspections.
improvement
in health and Destination Zero
safety Poster, email and
management leaflet campaign aimed
performance encouraging staff to
think what if...not if
only.
Lets introduce our KPIs.....
Strategic Initiatives KPI
Aim
New inspection regime, Number of
introducing quarterly H&S
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time
performance encouraging staff to
Accidents
think what if...not if
only.
Our benchmark or baseline...
Strategic Initiatives KPI Last
Aim year
New inspection regime, Number of
introducing quarterly H&S 3
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time 5
performance encouraging staff to
Accidents
think what if...not if
only.
What is our target?
Strategic Initiatives KPI Last 2012
Aim year Target
New inspection regime, Number of
introducing quarterly H&S 3 4
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time 5 2
performance encouraging staff to
Accidents
think what if...not if
only.
Lets measure how we actually did..
Strategic Initiatives KPI Last 2012 Actual
Aim year Target
New inspection regime, Number of
introducing quarterly H&S 3 4 4
Continuous
inspections. Inspections
improvement
in health and Destination Zero
safety Poster, email and
Number of
management leaflet campaign aimed
Lost Time 5 2 3
performance encouraging staff to
Accidents
think what if...not if
only.
Revisit the KPIs......Success?
Points of note
Quantity does not equal quality
Measure whats most important
Dont let the cost of measuring exceed the value of
the results
A MENU OF WHAT WORKS
J. LEITCH
HR DIRECTOR
NORTHSTONE (NI) Limited
20 February 2012
KEY RESULT AREA

PERFORMANCE INDICATOR

TARGET
PROFILING HEALTH AND SAFETY FOR KPIS
The Yard Sticks
(1) Accidents and Incidents
(2) Involvement and Communication
(3) Monitoring of Operational Performance
(4) Occupational Health Best Practice
(5) Promotion of Health and Safety
(6) System Effectiveness
(1) ACCIDENTS AND INCIDENTS
Accident Frequency

Accident Severity

Near Misses
(2) INVOLVEMENT AND COMMUNICATION
Safety Observations
Training Hours Delivered
Employee Involvement
Health and Safety Initiatives
Delivery of Visible Felt Leadership
Employee Suggestions Implemented
Tool Box Talk Delivery
Health and Safety Alerts Issued
(3) MONITORING OF OPERATIONAL
PERFORMANCE

Delivery of Health and Safety Inspections/Audits

Category I and Category II Conditions

External System Audit Outcomes

Disciplinary Offences

Supply Chain Compliance

Tenders Scores from Clients

(4) OCCUPATIONAL HEALTH
Safety Critical Work

Health Surveillance

Days Lost to Work Related Ill Health

Rehabilitation of Ill Employee

Locations with Health Management Plan in

Place
(5) PROMOTION OF HEALTH AND
SAFETY
Safety Award Success

Meetings with CEO/Directors

Delivery of Agreed Safety Improvement Plan

(6) SYSTEM EFECTIVENESS
Time spent by operational staff completing
safety documentation
Questions